On Friday, the US dollar index pulled back from the session highs of about 98.90 to trade at about 98.53 after the latest US data. The DXY trades within an ascending channel formation in the 60-minute chart. 

The Us dollar currency index continues to trade slightly above the 100-hour moving average line, despite the latest pullback. The USDX is now on the verge of entering the oversold levels of the 14-hour RSI.

The US Dollar Index Fundamentals Overview

From a fundamental perspective, the US dollar index trades during a relatively busy period in the US market. On Friday, the Michigan Consumer Sentiment Index for April outperformed the expectation of 47.6, with a reading of 49.8, up from the previous month’s equivalent of 47.6. The Michigan Consumer Expectations Index for the month also exceeded the forecasted reading of 46.1, with a reading of 48.1, up from 46.1 in March. 

On the other hand, the UoM 5-year consumer inflation expectation for the period outshone the estimate of 3.4%, with a rate of 3.5%, up from 3.4%, while the UoM 1-year consumer inflation expectation fell short of 4.8%, with a rate of 4.7%, down from 4.8%.

Earlier in the week, US retail sales for March beat the expected (MoM) change of 1.4%, with a change of 1.7%. The retail sales control group for the period also exceeded the forecasted change of 0.2%, with a change of 0.7%, while the retail sales ex-autos outshone the estimate of 1.4%, with a change of 1.9% (MoM). 

The US initial jobless claims for last week came in worse than expected, after rising to 214k from 208k, versus a forecast of 212k.

The US Dollar Index Technical Analysis (the 60-min Chart)

Technically, the US dollar index trades within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to move closer to oversold conditions.

Therefore, the bears will look to stretch the latest pullback towards 98.19 or lower to 97.88. On the other hand, the bulls will look to pounce on profits at about 98.90 or higher at 99.20.

The US Dollar Index Technical Analysis (the Daily Chart)

In the daily chart, the US dollar currency index trades within a descending channel formation. However, the 14-day RSI has recently bounced back to avoid falling into oversold conditions.

Therefore, the bulls will look to extend the latest rebound towards 99.45 or higher to 100.58. On the other hand, the bears will look to pounce on profits at about 97.44 or lower at 96.31.